Tearing the Heart Out of a Housing Transaction

Tearing the Heart Out of a Housing Transaction

     I heard it again just this weekend.  A home's Appraisal came in nearly 25% below the Sales Price agreed upon ($200,000 - $250,000 range).  The news was tearing the heart out of the Buyer, Seller, and their agents.  Heck, the entire transaction!

     I ask ...

    Can the market recovery truly establish any solid footing if Appraisals continue to get in the way of a Buyer and Seller's agreement of terms?  Or can the market really rectify and heal itself with prices established by a professional Realtor who knows a Comparable  from a Seller's "need to sell it at" price utilizing the new HVCC system? 

     It's a fact that many Appraisals are still completed in a timely and efficient manner.  Having been an Appraiser for over 20 years, I have a lot of respect for the efforts of many Appraising professionals still working within the industry.  Right now, Appraising can be one difficult and very challenging gig. 

     It's my opinion that much of the current difficulty surrounding Appraisals is due to the new "process" in which they are performed.  The  HVCC Act  (Home Valuation Conduct Code), was born out of the housing crisis, and the (researched) opinion that complicit Lenders/Appraisers relationships had a lot to do with the inflated property values that occurred throughout the mid-2000's.

     It was determined that, in order to eliminate pressures applied by Lenders on Appraisers to "hit the numbers", a buffer ... the Appraisal Management Company ... should be established.  The management company receives the Appraisal order and assigns it to:

     A.  Their best available appraiser
     B.  The next one in line
     C.  The Appraiser most local to the property
     D.  The Appraiser with the lowest fees
-or-
     E.  Any or all of the above

     At least in theory, this is what happens.  But ...

     Keep in mind, the Lender (competing with an array of other Lenders), is wanting to keep the costs/fees down for their Borrower.  The Appraisal Management Company (a separate business entity), competing with other AMC's for that Lender's business, also wants to keep a lid on their fees.  Given that the AMC's retain anywhere from 20 to 25% (more or less), of that Appraisal Fee, that leaves a pretty lean amount left over to pay the actual Appraisers doing the work.  

     The HVCC has accomplished some of what it was supposed to do.  It did create a "wall" between Appraisers and Lenders.  It did level the playing field for Appraisers vying for business from Lenders.  And further, HVCC has made it impossible for individual Loan Originators to influence the Appraisal Value by "leaning" on Appraisers.  It's strictly forbidden for Lenders to do so. 

     Many Appraisers have remained within the industry and tackle these challenging appraising assignments on a daily basis.  But stop and consider this ... can they truly be expected to spend the same amount of time working on these assignments as they did on their assignments in the past?  

     Can Appraisers truly be expected to produce the same quality of Appraisal ... knowing full well that they are working under much more scrutiny, a far more defined timeline, working with vast intangibles within the market such as foreclosures and short sales, and doing all it while earning far less pay?  The expectations remain, but I think the many issues that surround Appraising take their toll. 

     How does this effect the bottomline?  The HVCC Act helps consumers, doesn't it?   Well, in my opinion ... yes and no.


     The benefits are fairly obvious and they match the initial purpose for the HVCC itself.  The negatives are that the HVCC Act can be a terribly flawed process at a time when the market desperately needs experienced, "un-influenced", and fairly compensated Appraisers.  It's an imperfect process, (and dare I say ludicrous at times) given today's challenging housing market Appraisers are asked to work within and assign values to. 

     In a world where "no-appraisal Refinances" are now allowed for Borrowers knowingly underwater, it's my opinion that all Buyers and Sellers deserve a fair shake in regards to their transaction's Appraisal.  Don't today's Buyer and Seller need and deserve the acute accuracy and highest professionalism that can be found within the Appraisal industry?  The answer to that question is a resounding yes!

     Many issues remain to be addressed and improved in regards to Appraisals and the Appraiser's part within today's current housing market and mortgage transaction.  The whole process needs to work far better and much more quickly.  Positive changes must be made for everyone's benefit.  But until changes are made on the Appraiser's behalf, I believe we will continue to see problems arise on a regular basis. 

     *  Hoping to Buy or Refinance a home within  Joliet,  Will County, or elsewhere in the Chicagoland region?  Have clients dreaming of buying a home?  Contact me now.  We will work together to fulfill those hopes and dreams.  I'll put my 35+ years of mortgage experience and expertise to work on your ... or your client's behalf.
     I can be conveniently found at the following:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

FREE Consultation

eFax:  815.524.2281     Skype:  630.219.1316

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How to Choose Your Will County and Chicagoland "Super" Mortgage Originator

How to Choose Your Will County -
Chicagoland "Super" Mortgage Originator

     One of the questions I see crop-up often on real estate websites comes from First-time Home Buyers ...  

It concerns HOW they should go about looking for and choosing the Mortgage Originator for their first home's financing.

     Often, in response to these questions, I see others offering up the name of an Originator they know for contact.  And I suppose if that name crops-up multiple times, that does provide at least a starting point from which a home buyer can work.
    
     But I think those looking for mortgage lending services, especially First-time Home Buyers, need a more specific answer to that very important question.  First-time Home Buyers need absolutes ... real guidelines they can follow to help them find the strong "Super" Mortgage Originator that will ultimately prove best suited to their personal financial needs and most beneficial to securing a successful outcome when they buy their home.

     So, HOW do you go about finding your own "Super" Mortgage Originator?

     I won't try to kid you.  What I'm about to suggest takes time and effort on your part.  But the end result makes it worth it, because the Mortgage Originator you end up choosing will possess the important attributes:

     *  YOU find important 
     *  YOU are comfortable with

     *  A great reputation.  They will come highly recommended by multiple people, including other real estate-related professionals
     *  They'll have responded to your initial inquiries and questions in a timely and thorough fashion
     *  They'll have provided information regarding what determines your Interest Rate and your mortgage program costs
     *  That Mortgage Lender/Originator will be experienced, knowledgeable, and have a proven track record for successful Closings.  They'll offer references, testimonials.
     *  They'll have provided you real guidance, based upon facts and your personal finances ... not just generalities
     *  You will have found by speaking with their prior clients/professionals worked with ... that they were willing to "go to bat" for those clients, if need be.  That they don't give up on their clients or their transaction.  That they serve as a true advocate on the behalf of their clients and referral partners.

     If you truly hope to find the best Mortgage Originator    for your needs, there's no getting around it ...  

• You need to do your homework.  
• You need to ask questions
• You need to keep on asking questions 

     Dig long enough and hard enough to discover the Mortgage Originator that matches the characteristics listed above.  You want to work with the best.  I think that's me.

     If you're a Home Buyer looking to buy a home within the current market, doing that homework is well worth the effort.  You'll not only reap a good interest rate, but a home at an unbelievable price.  

     And you'll be establishing a real relationship with a quality, experienced Mortgage Originator.  One that will continue to work on your behalf beyond the Closing table.  A "Super" Mortgage Lender/Originator with which you can always rely in the future.   

     Get started now ...

      

     *  Are you hoping to buy or refinance a home or Investment Property in New Lenox or elsewhere in the Chicagoland - IL - Wisconsin area?  

Let's talk!  I'll put my 40+ years of mortgage experience and expertise to work answering your questions and fulfilling your financing needs.
     I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #217987  -  IL Lic. #031.0006220  -  WI Licensed #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280
 Cell/Text:  708.921.6331
eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

             

     

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Channahon, Crest Hill, Plainfield, Bolingbrook, 
Lockport, Channahon, Romeoville, Naperville, etc.), DuPage County, 
the City of Chicago, Cook County, and elsewhere within IL & WI.  

Referrals are Greatly Appreciated!

    

  

WHY Will County and Chicagoland Home Buying Transactions Must Begin With Home Buyers Getting Pre-Qualified!

WHY Will County and Chicagoland 
Home Buying Transactions Must Begin 

With Home Buyers Getting Pre-Qualified!

     I can write and write all day ...

     ... but until a potential home buyer truly understands WHY and WHERE their home buying transaction must begin, those words can do little.

     
      Simply put, until a potential home buyer discovers IF they can buy (based upon their verifiable income and credit scores), how do they even know WHERE to start their home search?  

     Or WHAT homes they can (or should) be viewing?   
     
     To borrow a couple old phrases ... it's my opinion that viewing homes without being pre-qualified is like ...

     *  Putting the cart before the horse ... and potentially
     *  Closing the barn door after that horse is out!
     
     Ohhhhh, the many risks that come with viewing homes prematurely!  Why do I feel that way?  

     Time, effort, and possibly even money are at risk of being wasted. But to me, the emotional risks being taken by a home buyer in these circumstances are the real issue.  They're way too high.  It's like an emotional Russian Roulette.
 
     View enough homes and odds are, you'll find one you fall in love with.  But what happens if you cannot buy or finance that home?  How do you emotionally proceed with home buying when you find yourself in that situation?  Let me tell you, it's heartbreaking as a Mortgage Lender to have to deliver that disappointing news. 

     Education is key to preventing the above scenario from occurring to any potential home buyer.  And that brings my post back full-circle.  As I see it, one of my biggest responsibilities (and challenges) as a Mortgage Lender revolves around education.  For my clients and potential clients throughout their entire home buying/financing process.  

     It's said that "a picture is worth a thousand words" ...  

     That is exactly why I utilize flyers as a way to get my mortgage message across.  They display, in a nutshell, the information and succinct message I hope to convey to those viewing them.

     My most recent marketing flyer addresses the very challenge I mention above ... that of educating a potential home buyer as to WHY they should have a conversation with me, their Mortgage Lender, prior to pursuing any other action regarding a home search.  Hopefully, the flyer (shown below) proves motivational.  Let's get started ...

 

     *  Dreaming of Buying or Refinancing a Home or Investment Property in New Lenox, Will County, or elsewhere in the Chicagoland/IL - WI region?  

Contact me today!  I'll put my 40 years of mortgage experience and expertise to work on your behalf.  Together we'll discover your home buying and financing options. 

     I'm easily found at: 

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220  -  WI Lic. # 216987

American Portfolio Mortgage Corp

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

eFax:  815.524.2281 

             

               

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.  

Your Referrals and Testimonials are always appreciated!

    
   

    

       

Your Will County and Chicagoland Mortgage Closing: What You Can Expect

Your Will County and Chicagoland 
 Mortgage Closing:  

What You Can Expect

    


     You've gone through Mortgage Pre-Approval ... the

Mortgage Application itself ... the verifying of employment(s) and savings accounts ... the documentation needed ... and Underwriting.  You've complied to every request presented to you.  Answered every question.  Dotted every "i" ... crossed every "t".  

     Gulp!   Now what?

     The Mortgage Closing.   The culmination of all your hard work and what you have been planning for over the previous months!

     Just how do you determine when your Closing should take place though?  Well, first ... a date has been set and agreed to within your  Real Estate Sales Contract.  If your mortgage processing went reasonably smooth, you will be closing on or close to that date.  

     But there are other important considerations as well.  Ever hear the old saying, "timing is everything?"  Well, in Closings that can be very true.  So WHEN  you close ... the day chosen can determine much.  The amount of money you must bring to the Closing table (known as pre-paid interest) is certainly determined by which day of the month you Close. 

     HOW?  A date set later in the month translates to lower closing amounts due at Closing, as prepaid mortgage interest costs accrue from the date of Closing up to the beginning of the next month.  This fact explains the high number of Closings you find set at the end of each month.  And just why it's sometimes harder to set a Closing appointment last minute during that time.  

     But most likely your Mortgage Lender will try to avoid setting a Closing date too late in the month also.  Should problems arise, they might cause a postponement or delay and that increases the chance of being re-scheduled at the beginning of the next month.  As pointed out above, that can be costly. If possible, a date that affords you some flexibility will be chosen for your benefit. 

     So what happens during your actual Mortgage Closing?  

     That can depend on where you are buying.  Each state (or  local municipality) determines its own method and requirements for closing a loan.   
    

     For those in Illinois/the Chicagoland region, Closing typically means the following:

    What the Borrower(s) Need to Bring:

     *  Funds to Close:  Either a  Cashier's Check  (typically payable to the Title Company) - or - a Wired (Electronic Transfer) from the Borrower's bank to the Title Company's bank.  Please note:  Amounts $50,000 and over due at Closing must be wired in (State Law).    
     *  Photo ID's  (typically active Driver's License or State-issued ID.  Acceptable:  Passport)
     *  Proof of  Homeowner's Insurance  coverage (Declaration page), along with proof of the 1st year's payment, has typically been provided prior to your Closing/Closing date being set, when closing through American Portfolio Mortgage Corp./my services.  But in other instances, this is an important requirement for Closing day.  So make sure you have this information and document with you at this time.


     WHO attends:  (Note: In our Chicagoland area, many of the Closings take place at title companies.  But Closings are possible, through my services, in other locations, including your home or place of employment.) 

     *  All Borrowers on the loan (and sometimes the spouse not on the loan) 
     *  Attorney(s) for Buyer and Seller
     *  Realtors for Buyer and Seller
     *  The Loan Officer (part of my personal mortgage services)
     *  Title company Closing Agent
     *  Seller(s), if still living in the property  

      What documentation will be signed:

     *  The title company prints and prepares the Lender's Closing Package and Settlement Statement in a concise packet, typically reviewed by the Borrower(s)' Attorney, and signed by the Borrower(s) after each form is explained.  

     The four most important documents are: 

     *  The Settlement Statement (HUD1)
     *  The Truth-in-Lending Disclosure (TILA)
     *  The Note
     *  The Mortgage

     and various others ...

     How much time will the Closing take?

     Mortgage Closings take longer than they did in the past.  Depending on the efficiency of the Closing Agent, title company, attorney(s), real estate professionals, Mortgage Lender involved, and the Borrowers themselves ... participants should be prepared to set aside a minimum of 1 to two hours for the signing of documents and Closing procedure.  

     After all documents have been signed, the Borrowers receive the keys to their new home.  (Agents strongly suggest for safety reasons that upon moving, new owners change all the locks to their home.)

     Although you have now successfully completed the actual Closing portion on your new home transaction and mortgage financing, there is still one very important facet of your financing to be explained.  How to make your mortgage payments.

     Your  Mortgage Lender  will explain when your first payment is due (and subsequent payments) and how to make your first payment.  Within the paperwork you receive at your Closing, you receive a coupon from my company, American Portfolio Mortgage Corp., providing you information and an address as to when and where your first mortgage payment should be sent.  

     Should your loan be sold at any time in the future, you will then be provided with the name, address, and terms of payment with the new loan servicer.  Be aware that the new loan servicer must honor all the terms and conditions of the original mortgage agreement you signed at your Closing.

     Your Mortgage Closing:  What You Can Expect.  The above info covers the typical Closing that takes place in the Chicagoland and Will County (IL) area.  Please remember, that all real estate ... including its business and transfer ... remains local.  The Closings and procedures conducted in your area may vary from what is found here.  Please ask your real estate professionals to clarify what differences may take place within your specific locale.
 

     *  Dreaming of buying a home or refinancing within the New Lenox, Will County, Chicagoland region?  Contact me!  I will put my 36 years of mortgage experience and expertise hard to work on your behalf.
     I can be conveniently found at any of the following:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

eFax:  815.524.2281    
Click Here for your FREE Consultation

Ready to Apply for your Mortgage?

 

             

               

Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.